What is Asset Management Software?
In essence, Asset Management Software (AMS) is a system designed to maximise the usability of each asset that is critical for the day-to-day operations of a business.
By being able to record and track assets from acquisition to disposal through efficient inventory and lifecycle management, businesses are able to build a centralised system filled with valuable asset data. Once collected, this data can enable an asset manager to forecast future asset acquisitions with better accuracy and begin to reduce asset expenditure. With the aim of maximising an asset's overall Return on Investment (ROI).
Depending on the size of a business and its assets, the data collected by an AMS solution can be vast. With the use of modern technology, most asset management software solutions are able to collect information such as real-time location, total and current usage, user permission, and maintenance and repair details. The latter being essential in avoiding unplanned downtime that can be costly to both business operations and costs.
By using this data, businesses are able to maximise an asset’s usability and determine the total cost of ownership. They can highlight if the benefits of an asset outweigh the total running costs, making it easier to decide when, or if, an ageing asset should be replaced or disposed of. These costs can include maintenance and repairs, replacing components, employee training, and operation.
5 Benefits of an Asset Management Software Solution
1. Properties, Facilities & Buildings Management
5 to 20% of overall fixed asset costs are contributed by properties, facilities or buildings, which are quite often referred to as fixed assets.
Having a property asset management software can help to record purchase prices, appreciation and depreciation levels, and the disposal price of your fixed assets.
Most accounting standards, such as GAAP, IFRS, and BSI, require you to disclose all of your assets on your annual return to companies house. Hence, most organisations use an asset management solution to accurately track the value of their assets.
Apart from the financial requirement, properties and facilities require frequently planned and preventative maintenance. As well as cleaning, security management, visitor tracking and energy management, to be operational. An asset management system can help to schedule, record and report on these activities.
A modern property asset management software can provide a framework for the following:
- Develop and maintain an effective Fixed Asset Register
- Calculate the appreciation and depreciation of fixed assets
- Schedule, track and monitor maintenance activities
- Record cleaning activities
- Manage workplace layout
- Track visitors and occupants for safety and security
- Energy management of properties
2. IT Asset Management
Businesses can collect a lot of valuable data from knowing the exact location, status, user, usage and license renewal of IT Assets. A cloud-based IT Asset Management system helps businesses to maintain an accurate IT Asset Register.
Along with hardware, a key asset that can be found in most IT asset registers is software. Software Asset Management helps businesses to reduce the cost of software ownership, optimise the number of software assets required, and maintain compliance with vendor contracts.
Tagging, Tracking and Reporting your hardware assets can help with their procurement and disposal. And, importantly, companies can understand which employee uses each asset.
A contemporary IT Inventory Management Solution can:
- Provide an on-demand view of your IT Inventory
- Manage entitlements and endpoints
- Know the usage data of your Cloud and On-Premise IT Assets
- Ringfence your IT Network to be cyber safe
- Monitor compliance with software vendor contracts
- Easily know what IT assets you have and who are using them
3. Equipment and Machinery Management
Unplanned downtime in equipment and machinery can cost 3 to 18% of total revenue. So, understandably, businesses prefer to maximise the uptime of their machinery.
An asset management software provides a framework that can help schedule planned, preventative and reactive maintenance. This includes scheduling maintenance, organising internal and external maintenance engineers, issuing work orders, arranging spare parts and disposal. Asset management tools that specialise in equipment and maintenance management are called Computerised Maintenance Management Systems (CMMS).
Maintaining equipment and machinery, production targets and company targets are interlinked. Most modern cloud-based asset management tools help to organise your planned and preventative maintenance in such a way that it can have a minimal impact on production.
A beneficial tool in most modern AMS solution is the Internet of Things (IoT). Equipment and machinery can transmit operating conditions like temperature, pressure, and service status. IoT friendly solutions can capture this data from the cloud and provide insightful and actionable reports to increase uptime of the machinery.
An effective computerised maintenance management system will help you to:
- Schedule planned and preventative maintenance activities
- Assign jobs to internal and external maintenance engineers
- Order replacement parts
- Optimise maintenance costs
- Effectively manage reactive maintenance activities
- Improve age and uptime of your equipment and machinery
4. Stock or Inventory Management
Asset tracking capabilities of an asset management system are quite often used to track stock and inventory, just like buildings, properties and facilities (typically referred to as fixed assets). The UK Accounting practice requires companies to declare their assets, which can include the stock/inventory an organisation holds. Hence, businesses like to record all their assets in one place called an asset register.
The technology used in tracking your stock and inventory can be RFID, Barcodes and NFC. Quite often, a hand-held scanner is used in reading an asset.
Typically, inventory is connected with users, location and projects. In some cases, it can be leased as well.
A modern cloud-based asset management tool allows companies to know the detailed status of all their stock and inventory and will help you to:
- Reduce or eliminate ghost assets
- Track leased and owned inventory
- Use RFID, Barcodes and Handheld scanners to Tag, Track and Report on your stock and inventory
5. Fleet Management
Just like properties and inventory, modern asset management tools can help to track the location of fleet assets. The technology often used in tracking fleet assets is Global Positioning System (GPS).
Asset Management Tools specialised to manage fleet are called fleet asset management tools. These tools can provide businesses with a variety of vital data, such as the speed of each fleet asset. For example, defined rules and protocols can be scheduled and monitored for fleet vehicle operators.
A cloud-based fleet asset management solution will:
- Track the location of your fleet assets
- Track speed and traffic compliance of your fleet assets
- Optimise pick-up and delivery routine
- Reduce fleet maintenance costs